Test bank for accounting information systems the crossroads of accounting and IT 1st edition

Test Bank for Accounting Information Systems The Crossroads
of Accounting and IT 1st Edition

Which of the following professionals is the most important group an IT
auditor must be able to communicate?

1. A) Accounting and Human Resource professionals
2. B) IT and Sales professionals
3. C) Accounting and IT professionals
4. D) Sales and Human Resource professionals


When data is "hard keyed" into the program, which of the following is
true?

1. A) Changing the data is cost efficient and may be accomplished in a matter of
minutes.
2. B) Changing the data is costly and may take days or weeks.
3. C) Changing the data requires purchasing additional computer storage and
may take days or weeks.
4. D) Changing the data requires recreating (recoding) the entire program.
What is an alternative to "hard keyed" data?

1. A) Using variables in the program, such as cell addresses in a spreadsheet
2. B) Creating the program in a way that does not require data
3. C) If user requirements are correctly defined, the data will not change and
may be `hard keyed.`
4. D) Alternatives to `hard keyed` data is not possible. All data must be `hard
keyed.`
The three basic functions of an enterprise system are

1. A) Processing, Output, and Reports
2. B) Input, Data, and Reports
3. C) Input, Processing, and Output
4. D) Business Intelligence, Processing, and Output


What is the main benefit of a company giving vendors access to the
enterprise system?

1. A) To suggest new products to sell
2. B) To help test the system security
3. C) To provide suggestions on improving the enterprise system
4. D) To coordinate inventory deliveries
What is the purpose of Enterprise Resource Planning (ERP) software?

1. A) Identify new trends in consumer purchasing
2. B) Help managers control organizational resources
3. C) Help identify the end of a product`s life cycle
4. D) Analyze an organization`s sales projections
An accounting system spans which of the following Value Chain
components?

1. A) Support
2. B) Purchase
3. C) Customers
4. D) All the above except C.
Which of the following data is shared between a Supply Chain Management
system and an accounting system?

1. A) The sale price of the finished product

2. B) The current inventory levels of the raw materials


3. C) The product delivery costs
4. D) The number of hours employees worked to create the product
Which of the following data is shared between a operations/production
system and an accounting system?

1. A) The cost of the raw materials
2. B) The monthly sales levels
3. C) The current inventory levels of the finished product
4. D) Customer information
Which of the following data is shared between a Customer relationship
management system and an accounting system?

1. A) Employee information
2. B) The advertising costs
3. C) The cost of goods sold
4. D) Vendor information
The purchasing cycle consists of transactions between which entities?

1. A) A company and vendors
2. B) A company and employees
3. C) A company and customers
4. D) A company and a bank


Which of the following is the best way to protect information assets?

1. A) Limit the number of users that can access the data at the same time to 5

people.
2. B) Implement policies and procedures for data deletion (destruction).
3. C) Limit the amount of time a user may access the data.
4. D) Require an ID and password to access data in the databases.
When looking at an accounting system using the aerial view, you see

1. A) Accounting information available to internal users, primarily management
2. B) Detailed information recorded in the accounting system
3. C) An enterprise-wide view of an organization showing the entire accounting
system
4. D) Information available on the tax reports for the Internal Revenue Service
and other tax agencies
When looking at an accounting system using the zoom view, you see

1. A) Accounting information available to internal users, primarily management
2. B) Detailed information recorded in the accounting system
3. C) An enterprise-wide view of an organization showing the entire accounting
system
4. D) Information available on the tax reports for the Internal Revenue Service
and other tax agencies


The ________ module in the Baseline Accounting System consists of
transactions such as the purchasing of goods or services from a vendor.

1. A) Customers
2. B) Banking
3. C) Employees
4. D) Vendors
Which transactions are usually performed in the Customers module of the

Baseline Accounting System?

1. A) Pay Bills
2. B) Create Purchase Order
3. C) Create Invoice
4. D) Receive Inventory
The ________ module consists of transactions for payroll.

1. A) Customers
2. B) Banking
3. C) Employees
4. D) Vendors
Which event is part of the Purchasing Cycle?

1. A) Enter Bill
2. B) Pay Bill


3. C) Make Deposit
4. D) Create Invoice
Which event is part of the Sales Cycle?

1. A) Receive Item
2. B) Enter Time
3. C) Make Deposit
4. D) Create Purchase Order
When making adjusting entries, you are using the ________ module in the base
line accounting system.

1. A) Reporting

2. B) Financial
3. C) Banking
4. D) Company
The reports module produces for the following people except

1. A) Investors
2. B) Managers
3. C) Accountants
4. D) Customers
What modules comprise a baseline accounting system?

1. A) Vendors, Employees, Sales, Banking, Financial, and Reports


2. B) Inventory, Employees, Sales, Banking, Financial, and Reports
3. C) Inventory, Employees, Sales, Banking, Accounting, and Reports
4. D) Vendors, Employees, Customers, Banking, Financial, and Reports
To record a payment for inventory delivered, the information would be
entered in a screen that looks similar to which paper form?

1. A) Check
2. B) Sales Receipt
3. C) Purchase Order
4. D) Invoice
To record an inventory order, the information would be entered in a screen
that looks similar to which paper form?

1. A) Check
2. B) Sales Receipt
3. C) Purchase Order

4. D) Invoice
What is the purpose of an onscreen entry form?

1. A) Onscreen entry forms help ensure information is entered only once in the
database.
2. B) Onscreen entry forms provide a familiar interface for entering information
into a database.
3. C) Onscreen entry forms allow you perform data analysis that is cumbersome
in a relational database.


4. D) Onscreen entry forms provide predictive modeling to gain insights from
data to improve business decisions.
Which accounting software is designed for a large-scale company?

1. A) SAP Business All-in-One
2. B) SAP Business One
3. C) Oracle`s JD Edwards EnterpriseOne
4. D) Oracle`s PeopleSoft Enterprise
Which of the following professionals is the most important group an IT
auditor must be able to communicate?

1. A) Accounting and Human Resource professionals
2. B) IT and Sales professionals
3. C) Accounting and IT professionals
4. D) Sales and Human Resource professionals
When data is "hard keyed" into the program, which of the following is
true?

1. A) Changing the data is cost efficient and may be accomplished in a matter of

minutes.
2. B) Changing the data is costly and may take days or weeks.
3. C) Changing the data requires purchasing additional computer storage and
may take days or weeks.
4. D) Changing the data requires recreating (recoding) the entire program.


What is an alternative to "hard keyed" data?

1. A) Using variables in the program, such as cell addresses in a spreadsheet
2. B) Creating the program in a way that does not require data
3. C) If user requirements are correctly defined, the data will not change and
may be `hard keyed.`
4. D) Alternatives to `hard keyed` data is not possible. All data must be `hard
keyed.`
The three basic functions of an enterprise system are

1. A) Processing, Output, and Reports
2. B) Input, Data, and Reports
3. C) Input, Processing, and Output
4. D) Business Intelligence, Processing, and Output
What is the main benefit of a company giving vendors access to the
enterprise system?

1. A) To suggest new products to sell
2. B) To help test the system security
3. C) To provide suggestions on improving the enterprise system
4. D) To coordinate inventory deliveries
What is the purpose of Enterprise Resource Planning (ERP) software?

1. A) Identify new trends in consumer purchasing
2. B) Help managers control organizational resources


3. C) Help identify the end of a product`s life cycle
4. D) Analyze an organization`s sales projections
An accounting system spans which of the following Value Chain
components?

1. A) Support
2. B) Purchase
3. C) Customers
4. D) All the above except C.
Which of the following data is shared between a Supply Chain Management
system and an accounting system?

1. A) The sale price of the finished product
2. B) The current inventory levels of the raw materials
3. C) The product delivery costs
4. D) The number of hours employees worked to create the product
Which of the following data is shared between a operations/production
system and an accounting system?

1. A) The cost of the raw materials
2. B) The monthly sales levels
3. C) The current inventory levels of the finished product
4. D) Customer information


Which of the following data is shared between a Customer relationship

management system and an accounting system?

1. A) Employee information
2. B) The advertising costs
3. C) The cost of goods sold
4. D) Vendor information
The purchasing cycle consists of transactions between which entities?

1. A) A company and vendors
2. B) A company and employees
3. C) A company and customers
4. D) A company and a bank
Which of the following is the best way to protect information assets?

1. A) Limit the number of users that can access the data at the same time to 5
people.
2. B) Implement policies and procedures for data deletion (destruction).
3. C) Limit the amount of time a user may access the data.
4. D) Require an ID and password to access data in the databases.
When looking at an accounting system using the aerial view, you see

1. A) Accounting information available to internal users, primarily management
2. B) Detailed information recorded in the accounting system


3. C) An enterprise-wide view of an organization showing the entire accounting
system
4. D) Information available on the tax reports for the Internal Revenue Service
and other tax agencies
When looking at an accounting system using the zoom view, you see

1. A) Accounting information available to internal users, primarily management
2. B) Detailed information recorded in the accounting system
3. C) An enterprise-wide view of an organization showing the entire accounting
system
4. D) Information available on the tax reports for the Internal Revenue Service
and other tax agencies
The ________ module in the Baseline Accounting System consists of
transactions such as the purchasing of goods or services from a vendor.

1. A) Customers
2. B) Banking
3. C) Employees
4. D) Vendors
Which transactions are usually performed in the Customers module of the
Baseline Accounting System?

1. A) Pay Bills
2. B) Create Purchase Order
3. C) Create Invoice
4. D) Receive Inventory


The ________ module consists of transactions for payroll.

1. A) Customers
2. B) Banking
3. C) Employees
4. D) Vendors
Which event is part of the Purchasing Cycle?

1. A) Enter Bill
2. B) Pay Bill
3. C) Make Deposit
4. D) Create Invoice
Which event is part of the Sales Cycle?

1. A) Receive Item
2. B) Enter Time
3. C) Make Deposit
4. D) Create Purchase Order
When making adjusting entries, you are using the ________ module in the base
line accounting system.

1. A) Reporting
2. B) Financial
3. C) Banking


4. D) Company
The reports module produces for the following people except

1. A) Investors
2. B) Managers
3. C) Accountants
4. D) Customers
What modules comprise a baseline accounting system?

1. A) Vendors, Employees, Sales, Banking, Financial, and Reports
2. B) Inventory, Employees, Sales, Banking, Financial, and Reports

3. C) Inventory, Employees, Sales, Banking, Accounting, and Reports
4. D) Vendors, Employees, Customers, Banking, Financial, and Reports
To record a payment for inventory delivered, the information would be
entered in a screen that looks similar to which paper form?

1. A) Check
2. B) Sales Receipt
3. C) Purchase Order
4. D) Invoice
To record an inventory order, the information would be entered in a screen
that looks similar to which paper form?

1. A) Check


2. B) Sales Receipt
3. C) Purchase Order
4. D) Invoice
What is the purpose of an onscreen entry form?

1. A) Onscreen entry forms help ensure information is entered only once in the
database.
2. B) Onscreen entry forms provide a familiar interface for entering information
into a database.
3. C) Onscreen entry forms allow you perform data analysis that is cumbersome
in a relational database.
4. D) Onscreen entry forms provide predictive modeling to gain insights from
data to improve business decisions.
Which accounting software is designed for a large-scale company?

1. A) SAP Business All-in-One
2. B) SAP Business One
3. C) Oracle`s JD Edwards EnterpriseOne
4. D) Oracle`s PeopleSoft Enterprise
When designing a database, which field would not belong in a table storing
customer information?

1. A) Zip Code
2. B) Street Address
3. C) Last Name
4. D) Order Number


When designing a database, which field would not belong in a table storing
inventory information?

1. A) Part Number
2. B) Purchase Order
3. C) Sale Price
4. D) Cost
When designing an accounting database, where should you begin?

1. A) With the outcome in mind
2. B) The accounting software
3. C) The paper forms
4. D) The development phase of the software development life cycle
In an accounting system database, which field belongs in a table containing
customer information?

1. A) Item Number

2. B) Street Address
3. C) Invoice Number
4. D) Cost
A ________ is a collection of related database tables.

1. A) Field
2. B) Relational Database


3. C) Operational Database
4. D) Primary Key
In an accounting system database, which field belongs in a table containing
inventory information?

1. A) Invoice Number
2. B) Purchase Order
3. C) Vendor ID
4. D) City
The following field names are part of a table for a company's inventory. Which
field name could be the primary key for this table?

1. A) Vendor ID
2. B) Item ID
3. C) Cost
4. D) Sales Price
In a relational database, how are tables connected?

1. A) By fields that are common in two or more tables
2. B) By the table names
3. C) By a query statement

4. D) By network addresses


The following fields are common to tables storing customer, vendor, and
employee information except?

1. A) Area Code
2. B) City
3. C) State
4. D) Cost
Which field below would not be stored in an order table?

1. A) Order ID
2. B) Item ID
3. C) Vendor ID
4. D) Customer ID
What is the purpose of a database query?

1. A) To provide a format for viewing data
2. B) To search the database to answer a specific question
3. C) To connect related tables
4. D) To uniquely identify a record in a database table
How much time do accountants spend using spreadsheets?

1. A) 30%
2. B) 50%
3. C) 80%


4. D) 90%

Spreadsheets containing data extracted from a relational database are called
what?

1. A) Ghost Data
2. B) Intelligent Data
3. C) Shadow Data
4. D) Gray Data
Online Analytical Processing (OLAP) cubes allow you to

1. A) View the same data from just one perspective
2. B) Manipulate data in a spreadsheet
3. C) View the same data from different perspectives
4. D) Add data to the database
Which act requires publicly traded companies to assess the effectiveness of
their internal controls and have an independent CPA firm audit this
assessment?

1. A) Wheat Commission
2. B) Sarbanes-Oxley Act of 2002
3. C) Security Exchange Commission Act of 1934
4. D) The GAAP Act of 1932


What is the purpose of security and controls over information assets?

1. A) Security and controls are to prevent fraud, unauthorized access,
modification, destruction, or disclosure of information assets.
2. B) Security and controls are to prevent data analysis.
3. C) Security and controls are to frustrate employees with legitimate need to
access information assets.

4. D) Security and controls are to ensure all the information assets are available
to all employees.
To find patterns in data you would use

1. A) A spreadsheet application
2. B) Business intelligence applications
3. C) Flat file
4. D) All the above except C
What are the three key factors to consider for a successful accounting
system?

1. A) People, Processes, and Technology
2. B) People, Budget, and Time
3. C) Processes, Budget, and Time
4. D) Time, Processes, and Technology
Which of the following agents is internal to a company?

1. A) Investor


2. B) Customer
3. C) Employee
4. D) Vendor
Which of the following is not a phase in the SDLC?

1. A) Buy
2. B) Design
3. C) Plan
4. D) Sell
Which of the following processes are performed in the Designing Phase of the

SDLC?

1. A) Identify the requirements for the new system
2. B) Test the new system
3. C) Identify the new business processes
4. D) Install the new system
The staffing process occurs in which phase of the SDLC?

1. A) Plan Phase
2. B) Analyze Phase
3. C) Build/Buy Phase
4. D) Deploy Phase


Analyzing the impact an accounting system will have on people should occur
in which phase of the SDLC?

1. A) Planning
2. B) Analyze
3. C) Design
4. D) Deploy
IT ________ is the design or blueprint for an enterprise's information
technology.

1. A) Infrastructure
2. B) Architecture
3. C) Technology
4. D) Network
An IT auditor must understand the terms and definitions used by accounting
and IT professionals.

1. True
2. False
A Supply Chain Management (SCM) system is a subsystem of an Accounting
System.

1. True
2. False


Only internal users, for example accountants, directors, and executives, may
use an integrated enterprise system.

1. True
2. False
An integrated enterprise system allows different departments to use the
same information.

1. True
2. False
Enterprise Resource Planning (ERP) software focuses on integrating
information flows across an entire enterprise.

1. True
2. False
The enterprise-wide view of accounting enables the accountant to see how
the accounting system interacts with other subsystems in the enterprise
system.

1. True

2. False
The Customer Module of a baseline accounting system includes creating
purchase orders.

1. True
2. False


The Financial Module of a baseline accounting system includes payroll
transactions.

1. True
2. False
The database is a key component of an accounting system.

1. True
2. False
A database may have two or more tables with the exact same name.

1. True
2. False
Understanding how the data will be used is essential when designing a
database.

1. True
2. False
A database record is a collection of related database tables.

1. True
2. False